Germany: Selected Issues

November 2, 2004

Preview Citation

Format: Chicago

Germany: Selected Issues, (USA: International Monetary Fund, 2004) accessed December 4, 2024

Summary

This Selected Issues paper on Germany reviews investment trends and business capital stock in Organization for Economic Co-operation and Development (OECD) countries. Sharp wage increases are found to boost capital formation in the short term as employers substitute capital for labor at a rate that adjusts to the higher relative price for labor. To limit the political economy biases to fiscal policy, the paper explores options to strengthen budgetary institutions, notably more transparency; stronger budgetary rules; and more room for Länder governments to mobilize revenue and tailor spending to local circumstances.

Subject: Employment, Expenditure, Labor, Labor force participation, Real exchange rates, Unemployment, Wages

Keywords: Capital accumulation, CR, Employment, Equilibrium exchange rate, Europe, Government, Growth rate, Inflation differential, ISCR, Labor force participation, Payroll burden, Payroll cost, Social security contribution rate, Unemployment, Wages

Publication Details

Pages:

104
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2004/340
Stock No:

1DEUEA0022004
ISBN:

9781451810455
ISSN:

1934-7685

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